Apple gets $208M in tax breaks to build in Iowa

26 August, 2017, 01:29 | Author: Marjorie Miles

The new Public Improvement Fund, to be established and managed by the City of Waukee, will support the development of community projects like parks, libraries and recreational spaces, as well as infrastructure needs. Apple did not respond to a question on how many data centers it has in the United States. The data center will run on wind power and other alternative renewable energy sources - in line with Apple's 2012 pledge to run all its facilities on 100 percent renewable energy.

The IEDA, which reportedly would provide almost $20 million of tax credit in addition to more than $188 million of property tax abatement from the city of Waukee over the next 20 years, said the project would create at least 50 jobs at a qualifying wage of $29.12 dollars per hour. Facebook, Alphabet's Google and Microsoft also maintain data centers in Iowa.

Iowa Economic Development Authority Director Debi Durham said, once completed, it will be the largest ever private investment in the state. While these data centers may bring the tech industry to small towns, they fail to provide many permanent jobs, or to greatly improve the local economy, experts say.

The exact location has not yet been disclosed, but it will be within the city limits of Waukee, a booming suburb neighboring Des Moines.

The Cupertino-based iPhone giant is earmarking US$1.3bn for the construction of a new data centre in Waukee, Iowa. Last year, Apple spent over $50 billion with more than 9,000 USA suppliers and manufacturers. "And as the App Store grows, we look forward to growing in Iowa", Cook said.

Cook spoke alongside Iowa Governor Kim Reynolds, where he promised that the facility would create hundreds of jobs for Iowans, in areas such as construction and engineering.

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The Apple data center in Maiden, North Carolina. The economic development board's chairman, Chris Murray, said such projects bring people who build homes, generating tax revenue and causing other businesses to explore moving to Iowa.

Apple CEO Tim Cook was in Waukee this afternoon to announce the deal alongside Gov. Reynolds and other local politicians. "This announcement further solidifies Iowa as a hub where innovation and technology flourish and demonstrates this is a place where world-class companies can thrive".

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